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Contents

Executive Summary

Oriflame

Task 01

Welcome To Oriflame

Oriflame in Short

Growth

Why Oriflame

Global Presence

Best of nature, Best of Science

Product Development

Key areas of expertise

Togetherness, Spirit and Passion

Oriflame Product

Task 02

Selected product- Make- Up

Product Development

Task 03

Business Description

Direct Selling

Advantages of Direct Selling

Capital Market

Competitor Analysis

Comparative Business

Price Analysis

Earning & Dividends Analysis

A Global Research and Analysis Capability

Interim Report

Conclusion

Annexure

List of References

Executive Summary

Our vision –

Our vision is to be the 1 Beauty Company Selling Direct

Our mission –

Our mission is to fulfill dreams

Task 01

Welcome To Oriflame

Our vision is to make Oriflame the first name that comes to mind for anyone looking for affordable quality cosmetics or a career with a friendly direct sales company.

Oriflame offers a smart way of selling and buying. Our direct sales system benefits customers and Consultants alike. For the customer, it offers a reliable, convenient and fun way to buy from a friend, with personal advice, ideas and inspiration as well as full money-back guarantee.

Oriflame is also a company of choice. Whether you prefer to sell by holding Beauty Demonstrations or simply distributing Catalogues to your family and friends - the choice is yours.

As a Consultant you'll have dynamic income and career opportunities as well as enjoying unlimited potential for personal development. Though our Consultants work independently, they are also conscious of being part of a highly supportive global family. Moreover, Oriflame also offers wide-ranging sales training and leadership development programmes.

❖ These are special facts about Oriflame UK & Ireland…

❖ 1967 Founded in Sweden.

❖ 1970 First Oriflame Consultants start selling in the UK.

❖ 1972 Oriflame Ireland opens as a licensee.

❖ 1988 First Catalogues published in the UK.

❖ 1998 Change to current Success Plan.

❖ 2003 Oriflame UK and Ireland reach 7,000 Sales Consultants.

❖ 2006 Oriflame UK and Ireland became part of Premier Direct Group PLC.

Premier Direct Group PLC - the market leading direct sales group of companies. PDG has grown almost 35% in the last four years and has delivered excellent profits and rewards to its staff and shareholders alike. PDG will help take Oriflame UK to its next level, as part of our fast growing and dynamic business, through our focus on recruitment and delivering first class service.

Oriflame in short:

-1.1 Billion Euros in annual sales.

-2.3 million Sales consults.

-6 200 employees

-more than 800 cosmetic products

- more than 100 million catalogues distributed in 35 languages.

Growth

❖ December 1997: Management buys out

❖ August 1998: Floated on Alternative Investment Market

❖ 2000: Acquisition of competitor (Books UK) – 80 agents

❖ Relocation to new 170,000 sq ft distribution centre

❖ January 2002: Restructuring of senior management and board

❖ 2003: Acquisition of the shopping-at-work division of Kleeneze:

❖ The Wonderful Book Company (WBC)

❖ January 2005: Acquisition of Greenwich Direct and Laughing Gull

❖ April 2006: Acquisition of Oriflame UK Limited

Why Oriflame?

Oriflame offers some 550 excellent products at any given time, with around 180 new ones being launched every year. This means that everyone will always find something interesting! Oriflame has one of the world's widest product ranges based on natural ingredients, none of which are tested on animals. Our products are developed using state-of-the-art technology at the Oriflame Global Technical Centre in Dublin, Ireland.

As an added incentive, Oriflame provides a money-back guarantee on all of its products.

Global presence

Celebrating our 40th anniversary 2007, Oriflame is one of the major direct selling cosmetics companies in the world. The company is present today in more than 59 markets, ensuring a unique base of knowledge and experience.

Best of nature, best of science

Oriflame has 40 years' experience in producing cosmetic products, combining the best natural ingredients with the latest scientific research. Our accumulated knowledge and experience have been gathered into a single, dedicated unit – the Global Technical Centre (GTC) located just outside Dublin, Ireland. About 40 persons are employed at the GTC, most of who have degrees in chemistry and other scientific disciplines.

Product development

More than 800 products are offered at any given time, with 250 new products being introduced each year. Make-up products change twice a year, while skincare and fragrances change less frequently. Average development time for a product is 1.5 years. Each product is extensively tested both at Oriflame laboratories and external ones to ensure maximum safety, efficacy and quality. None of the Oriflame products have been tested on animals, only on human volunteers.

Key areas of expertise

Our core competencies embrace a wide range of foundation technologies and products, with the accent placed squarely on quality assurance and compliance with international regulatory requirements. The GTC also serves as “Guardian of the Oriflame Brand” in all quality and ethical matters.

Togetherness, spirit and passion –

These are the three core values of Oriflame which we fundamentally respect and believe in. Trusting these values we feel confident that we can succeed in this competitive business while at the same time help make the world a better place.

Togetherness

People who work together and share the same goals achieve greater results. They motivate each other and know that pulling together is more rewarding than going at it alone.

Spirit

People with a can-do spirit have a winning attitude and never give up. They are prepared and committed to do what it takes to succeed.

Passion

Passionate people have the power to change the world. They love what they do, they believe in it. They know deep down that they can make a difference.

Oriflame Products

First Category

[pic][pic]Tender Care

[pic]

[pic]Time Reverse

[pic]

[pic]

Milk and Honey Gold

[pic]

[pic]Oriflame colour range

[pic][pic]Prefect Body

[pic]

[pic]

[pic]Éclat

[pic]

Second category

Skin Care

Everything you need to cleanse moisture, soften and protect your skin.

Aloe

[pic] Aloe Vera has been used since ancient Egyptian times to soothe and treat skin. Now you can make it a part of your daily skin care routine with a range of products specially formulated to leave your skin with a fresh, healthy feel. All aloe products are hypoallergenic and suitable for all skin types, including sensitive.

Blueberry

[pic]

Look your youthful best with Blueberry: a wholesome range of all-natural skin care products that will help protect and moisturise your skin, and give it an irresistibly

Fragrance

Divine

Evoking images of spring meadows and lush forests, Divine is an easy fragrance of green hyacinth, violets, angel face rose, lily flower, white freesia and white jasmine.

Elvie

A tender expression of subtlety and sensuality in a fresh and modern scent.

Fire

Fire. Hot. Audacious. A seductive blend of citrus and pansy falls into a heart of clove and tiger lily.

Hair and Body Care

Body & Mind

[pic] A range of sensual body products with essential oils that calm and rebalance. Your skin will look radiant and you'll reach a new level of tranquility.

Foot Care

Stand up for healthy feet by making foot care part of your weekly routine.

Colour Therapy

Aromatherapy enhanced with colour therapy to revive, awaken, calm or soothe your senses.

Jewellery

Attractive custom jewelers that enhances your looks at an affordable price.

Accessories

Give your look that finishing touch.

Children

[pic]OK for Kids

Dermatologically-tested, safe and mild, these products have been carefully made to care for your child's delicate skin.

[pic]Oriflame Baby Care

Your baby's delicate skin needs special attention. Trust Oriflame Baby Care to preserve and protect your baby's sensitive skin.

Men

A full range of products especially for men

All shower Gels

Here you can find all the Oriflame Shower Gels for men.

All after Shave Balms

Here you can find all the Oriflame after Shave Balms for men.

Make-up Aqua Vibes

Chill out with Aqua Vibes. Bursting with vibrant and cooling colours, it’s this summer's coolest colour collection.

Task 02

Selected Product – Make Up

Make-up to deepen your natural grace through natural skin care ingredients, either for everyday use or for festive occasions.

Aqua Vibes

Chill out with Aqua Vibes. Bursting with vibrant and cooling colours, it’s this summer's coolest colour collection.

Colour by Oriflame - Accessories

To obtain an excellent finish you need the right tools.

Colour by Oriflame - Face

Creating a perfect base has never been easier. Whether your skin type is normal, oily or dry, you want just a tint of colour or full coverage, Colour by Oriflame has the products that enhance your natural beauty and take care of your skin

Colour by Oriflame - Nails

Beautiful nails don't just happen, but you can make them happen with Colour by Oriflame nail care products.

Giordani Gold

Luxurious colour combined with powerful anti-ageing ingredients for ultimate performance. Each piece from the collection is like a precious jewel, irresistible in its exclusive gold metallic casing

Oriflame Colour - Eyes

Oriflame Colour eye make-up brings emphasis and expression to the eyes. Whether you like experimenting with the latest fashion shades or prefer the classical look, you will find all you need in Oriflame’s comprehensive range of eye make-up.

Oriflame Colour - Face

Creating a perfect make-over starts with preparation of the 'artists canvas'. Oriflame Colour has the products that enhance your natural beauty and take care of your skin.

Oriflame Colour - Lips

Treat lips to an Oriflame Colour lipstick! Available in glorious, up-to-the-minute shades and complemented with Oriflame Lip Definers.

Oriflame Colour - Nails

Get up close and personal with Oriflame Colour nail care products.

Visions

Discover new Visions V - a trendy urban makeup range for the coolest girls on the block! You'll be impossible to resist.

Task 03

Business Description

Oriflame Cosmetics. The Group's principal activity is to market and distribute natural skincare and cosmetic products. It markets these products through independent sales force. Its sales force brings its cosmetics directly to their customers. The Group's products span the range of natural Swedish cosmetics, skincare, colour cosmetics, make-up, fragrances and toiletries. The categories Skin Care, Colour Cosmetics, Fragrances, Toiletries and Accessories offer the consumer a choice of over 800 products. The Group operates in 60 countries

Direct Selling

It is actually impossible to lose money when selling Oriflame products! When you receive a product you have ordered, you can either use it or send it back to Oriflame. If you choose to use it, you are allowed payment credit. If you are not satisfied with the product, you are of course free to return it to Oriflame.

According to research by the World Direct Selling Association, direct selling is popular for the following reasons:

• direct selling is a good way to meet and socialize with people

• direct selling offers flexible work schedules

• direct selling is a good way to earn extra income

• direct selling is a good way to own a business

• earnings are in proportion to efforts

Advantages of Direct Selling

...for the customer

Oriflame's high-quality cosmetic products are exclusively marketed to customers by independent salespeople, called Sales Consultants. Products are often offered at in-home demonstrations, parties, at work or simply shared among friends and family. One of the many advantages of this concept is the fact that the customer can ask questions and get advice in a relaxed atmosphere. Plus the products are delivered to the customer at home, directly to the door!

Another key benefit is that Oriflame offers a money-back guarantee on all products. This makes shopping very safe for Oriflame customers.

...for the Sales Consultant

As an independent Oriflame Sales Consultant, you will have a unique opportunity to learn more about cosmetics, as well as the chance to earn some extra money! Whether you decide to sell cosmetics on a hobby basis to earn extra pocket money, or opt to work part or full time, is entirely up to you!

Another advantage is that you will have a flexible working schedule – you choose when, where and how much you want to work! It is also a chance for you to start your own business without any investments. If you wish, you can apply for a credit at Oriflame in order to further support and develop your business.

Capital Market

Oriflame is today hosting a Capital Market Day in Stockholm. During this day CEO Magnus Brännström will give an overview of the Group's strategy and corner stones going forward together with a regional review and presentation of market opportunities.

Oriflame will also announce that it is entering the nutritional wellness segment with a test launch in Western Europe during the fourth quarter 2008 and with a roll out in 2009-2010. Expected sales from this new category are incorporated in current outlook and forecasts.

Furthermore, the Capital Market Day will encompass presentations on Oriflame's direct selling model and the direct sales industry, the Group's financials, the new operational platform, the Group's marketing and product development as well as Oriflame's catalogue development.

Management is reiterating the outlook for 2008, as well as the Group's long term targets.

• Sales growth for 2008 is expected to be well above 10% in local currency and operating margin is expected to improve despite the prevailing exchange rate environment.

• As has been shown historically, results for individual quarters are affected by a number of factors and vary significantly. Catalogue launch dates and the Easter holiday had a beneficial timing effect on sales during the first quarter. Also, as stated earlier, Oriflame is facing tougher comparable figures for the remaining quarters of 2008.

• Oriflame's long term targets remain. The company aims to achieve annual sales growth of around 10% in local currency and to reach 15% operating margin in 2009

Oriflame is an international cosmetics company selling direct, with sales in 61 countries. Oriflame offers a complete range of high quality skincare, fragrances, colour cosmetics, toiletries and accessories, marketed through a sales force of independent sales consultants. Although the company has grown rapidly it has never lost sight of its original business concept - natural Swedish cosmetics, sold from friend to friend. Oriflame is a co-founder of World Childhood Foundation. Oriflame Cosmetics is listed on the Nordic Exchange.

Competitor Analysis

This analysis compares Oriflame Cosmetics with three other companies in closely related industry sectors.

The full Comparative Business Report is available to Subscribers or may be purchased individually. The full report generally includes the following sections:

- Sales Analysis: Recent sales, Sales Growth, Sales per Employee

- Recent Stock performance.

- Company Valuation Rations: Price/ Earnings, Price Book Value.

- Price/Sales and 52 Week Price changes.

- Dividend Analysis.

- Profitability Analysis: Gross Profit Margin.,EBITDA Margin

- Earning Before Extraordinary Items

- Inventory Analysis

- Research and Development Expenses

- Financial Position: Long Term Debt/Equity, Days Accounts Receivable, Days Inventory.

- R&D Expenses/Sales.

Comparative Business

The Wright Comparative Business Report is available to Subscribers or may be purchased individually. The full report generally includes the following sections:

• Sales Analysis

o Recent Sales

o Sales Growth

o Sales per Employee

• Recent Stock Performance

• Company Valuation Ratios

o Price/Earnings

o Price/Book Value

o Price/Sales

o 52 Week Price change

• Dividend Analysis

• Profitability Analysis

o Gross Profit Margin

o EBITDA Margin

o Earnings Before Extraordinary Items

• Inventory Analysis

• Research and Development Expenses

• Financial Position

o Long Term Debt/Equity

o Days Accounts Receivable

o Days Inventory

o R&D Expenses/Sales

Price Analysis

The Wright Price Analysis Report includes up to a 10-year history of:

• Quarterly Prices: High, Low, and Closing

• Quarterly Percent Change in Price

• 12 Month Percent Change in Price

Earnings & Dividends Analysis

The Wright Earnings & Dividends Analysis Report includes a 10-year summary of:

• 12 Months Earnings per Share and percent change

• Quarterly Reported Earnings

• 12 Months Dividends per Share and percent change

• Quarterly Reported Dividends

• Dividend Payout Percentage

A Global Research and Analysis Capability

Wright has been providing comprehensive comparative evaluations and analysis of public companies to the investment community for over 40 years. Wright is a pioneer in quantitative investment analysis.

To meet its equity research needs, Wright developed the World scope® Database, recognized by the global investment community as the world's most comprehensive and accurate international financial database. Wright developed World scope® more than 20 years ago and continues to provide the database with the editorial oversight that only a seasoned investment firm with a global perspective like Wright can deliver. The timely value-added research and analysis included in Wright Reports is based on Wright's long history and experience including the development and production of the World scope Database.

It is not only Wright's clients, but also the financial community in general that benefits from Wright's research, investment advisory and analytical services. For over four decades, Wright Investors' Service has managed an in-house research capability that provides the analyses that help institutional and private investors achieve their objectives

Interim report

• Local currency sales increased by 26.5% and Euro sales increased by 20.7%, to €324.2m (€268.5m).

• Average size of the sales force increased by 25%, to 2,610,600 consultants and closing sales force was up by 24%.

• EBITDA increased by 23%, to €57.2m (€46.4m).

• Operating margin before restructuring costs, due to the new operational platform, was 15.5% (15.4%) resulting in a 22% increase in operating profit to €50.2m (€41.3m).

• Net profit before restructuring costs increased by 22% to €37.9m (€31.1m).

• EPS after dilution and before restructuring costs increased by 22% to €0.67 (€0.55). Diluted EPS after restructuring costs amounted to €0.58 (€0.55).

• Cash flow from operating activities amounted to €3.3m (€30.4) partly due to the cash impact for the restructuring programme and an inventory build up.

• The new operational platform is now fully up and running.

Conclusion

Annexure

Share Graph

Oriflame Cosmetics was introduced on the OMX Nordic Exchange on 24 March 2004 through an initial public offering of Swedish Depositary Receipts (SDRs). On 31 December 2007, the number of shareholders and SDR holders was 4,494. Each SDR represents one share. The last price paid on 28 December 2007 was SEK 413, giving Oriflame a total market capitalization of SEK 23 billion. During 2007 an average of 249,187 shares were traded per day. A total of 62.2 million Oriflame shares were traded on the OMX Nordic Exchange at a value of SEK 21.5 billion.

|Date |+/-SEK |+/- % |Bid |Ask |Volume |

|2008-06-13 18:00 |-12.00 |-2.99 |388.50 |389.00 |418,548 |

[pic]

|Regional sales |2003 |2004 |2005 |2006 |2007 |

|Euro million |  |  |  |  |  |

|CIS & Baltics |299.6 |331.0 |382.9 |496.5 |613.1 |

|Central Europe & Mediterranean |179.9 |180.2 |209.9 |223.8 |258.9 |

|Western Europe (& Africa) |99.9 |82.3 |84.4 |90.3 |99.4 |

|Latin America |30.2 |26.1 |33.3 |40.0 |49.1 |

|Asia |29.9 |30.5 |30.6 |43.7 |62.2 |

|Other |12.6 |20.6 |24.6 |23.6 |26.7 |

|Group |652.1 |670.7 |765.7 |917.9 |1,109.4 |

|Income statements |  |  |  |  |  |

|Euro 000 |2003 |2004 |2005 |2006 |2007 |

|Net sales |652,136 |670,692 |765,690 |917,945 |1,109,385 |

|Cost of sales |(205,572) |(207,065) |(242,961) |(283,283) |(331,559) |

|Gross profit |446,564 |463,627 |522,729 |634,662 |777,826 |

|Selling and marketing expenses |(215,707) |(234,150) |(277,803) |(334,871) |(418,075) |

|Administrative expenses |(116,831) |(119,977) |(138,180) |(172,736) |(204,355) |

|Operating profit before exceptional items |114,026 |109,500 |106,746 |127,055 |155,396 |

|Exceptional items * |16,233 |- |(4,201) |- |(25,813) |

|Operating profit |130,259 |109,500 |102,545 |127,055 |129,583 |

|Exceptional items ** |  |(4,748) |  |  |  |

|Financial income |- |- |465 |579 |903 |

|Financial expenses |- |- |(5,527) |(19,306) |(24,578) |

|Financial expenses, net |(28,410) |(14,712) |(5,062) |(18,727) |(23,675) |

|Profit before tax |101,849 |90,040 |97,483 |108,328 |105,908 |

|Current tax |(11,259) |(10,992) |(9,919) |(17,745) |(16,488) |

|Deferred tax |(1,825) |514 |(1,283) |2,916 |2,558 |

|Net profit |88,765 |79,562 |86,281 |93,499 |91,978 |

|    |

|  |2003 |2004 |2005 |2006 |2007 |

|Earnings per share before full dilution, Euro |1.65 |1.37 |1.45 |1.62 |1.65 |

|Earnings per share after full dilution, Euro |1.58 |1.36 |1.45 |1.61 |1.63 |

|    |

|*) 2003: Gain on disposal of subsidiary. 2005: Loss on disposal of subsidiary |

|**) 2004: Stock exchange listing expenses |

List of References

➢ Oriflame Consult Manual

➢ Oriflame Magazines

➢ Web Pages

➢ Consultants

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